When Washington Flexes, Panama Folds: The CK Hutchison Shakedown

Panama's Supreme Court just canceled CK Hutchison Holdings' port concession contracts, declaring them unconstitutional and seizing back two strategic ports. Make no mistake: this isn't about legal niceties. It's a textbook case of American muscle erasing what used to be Panama's free business environment.

A Hong Kong government spokesperson slammed any foreign power using coercion or pressure to bulldoze Hong Kong companies' legitimate business rights abroad.

But the real story lies in the sequence of events. Watch how quickly things unravel when Washington decides it wants something.

A Three-Decade Partnership Suddenly "Unconstitutional"

CK Hutchison had been running port facilities at both ends of the Panama Canal since the 1990s. The contract got renewed in 2021. Leading up to that renewal, Panama's own Audit Office confirmed in its 2020 report that Panama Ports Company—CK Hutchison's local subsidiary—"substantially complied with the concession contract terms." Panama's Maritime Authority echoed that assessment in 2021, stating the company "fully fulfilled the responsibilities of the concession contract."

Fast forward four years. Trump returns to the White House in January 2025, and everything flips. In his inaugural address, Trump signals what's coming: he declares the Panama Canal vital to US interests and vows to "take it back".

Days after Trump's comments, Panama's Audit Office announces a sweeping investigation into CK Hutchison's port operations. The stated goal: determine whether the company honored its concession contract, fully reported revenues and expenditures, and whether corruption tainted the renewal process.

Rubio's Visit Sets the Dominoes Falling

The Trump administration keeps turning the screws. On February 2, 2025, Secretary of State Marco Rubio flies to Panama, pressuring the country to distance itself from China. President José Raúl Mulino caves immediately: he announces Panama's withdrawal from China's Belt and Road Initiative and pledges to strengthen cooperation with the United States to boost American investment in the region.

Two days after Rubio's visit—just 48 hours—two Panamanian lawyers file suit in local courts. They allege Panama Ports Company "violated 10 constitutional provisions" and demand cancellation of CK Hutchison's operating rights at two local ports. The timing isn't subtle.

In July, after months of "study," Panama's Comptroller General formally files suit, asking the court to declare the 25-year port operating contract CK Hutchison signed in 2021 unconstitutional. The Comptroller goes further, criticizing CK Hutchison for insufficient loyalty to the Panamanian government and harming Panama's interests.

On January 12 of this year, Panama conducts joint military exercises with US forces. The declared goal: defending this Central American nation's strategic canal waterway. The message to anyone watching is crystal clear.

A Judicial Rubber Stamp on Raw Power

Finally, Panama's Supreme Court rules that CK Hutchison's port operating contract is unconstitutional. Anyone claiming this was normal judicial procedure isn't paying attention. The reality is Panama buckled under massive US pressure, ripping up a valid contract and forcibly seizing back the operating rights to Panama's ports.

Hong Kong companies have poured substantial investment into Panama and delivered significant long-term economic contributions, supporting local economic development. Panama Ports Company, CK Hutchison's subsidiary, has invested 1.7 billion balboas (approximately HK$13.2 billion) to date—far exceeding the 1.05 billion balboas required by the original contract and supplementary agreements. During its operations, Panama Ports Company contributed 670 million balboas to Panama, dwarfing the contributions of other port operators.

According to Panama's own Comptroller General's evaluation, Panama Ports Company actually contributed over 5.9 billion balboas to the local economy through port added value, indirect benefits, and direct payments to Panama. Those numbers tell the story Washington doesn't want told.

Billions Invested, Contract Honored—Then Torn Up

Hong Kong enterprises consistently invested and operated according to the contract, making important contributions to Panama's economy. Yet Panama, under US pressure, arbitrarily tears up the contract and unilaterally revokes the port operating rights. The absurdity is breathtaking.

This incident carries several layers of implications worth examining closely.

The Panamanian government has become a complete puppet of the United States, arbitrarily confiscating foreign enterprises' assets. Hong Kong and Chinese Mainland enterprises will hesitate to further invest in the region.

Hong Kong's business leaders facing Washington's muscle have one clear path forward: align firmly with Beijing and push back hard. It's the only way to safeguard what's theirs—dignity and capital alike. And you can bet the nation will keep backing Hong Kong companies as they fight to reclaim their rightful business interests.

When US Hegemony Rewrites the Rules

Look at what US unilateral hegemony actually delivers: Washington slaps tariffs on whoever it wants, threatens military action, and tramples the very international rules it once lectured the world about. Under American pressure, investment climates in targeted regions turn into pure jungle. Legal protections evaporate the moment Washington wants them gone.

Stop pretending business operates in some politics-free zone. The truth is: capital has a passport—always has, always will. For businesspeople to survive in this landscape, backing your nation's position isn't optional. It's the baseline for keeping what you've built.

Lo Wing-hung

Bastille Commentary

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

US President Trump's baffling maneuvers have trapped himself in a chaotic command dilemma in the war against Iran.

Online commentary jokes that Donald Trump follows "The Art of Donald", or say, “The Art of Don’t Know”—" If even I know not my next move, how then could the enemy? "—implying that Trump blindly charges ahead, and naturally the enemy can’t decipher his strategy because he has none at all.

Before launching the conflict with Iran, Trump relied heavily on the United States’ military supremacy—aircraft carriers, stealth fighters, Tomahawk missiles, and the THAAD defense system. He assumed a heavy bombardment campaign would either topple the Iranian regime or force it to surrender.

This single-script scenario repeated everywhere like a formula. When Iran’s actual response deviated from the script, Trump, the director, found himself at a loss and resorted to "The Art of Donald."

First, the bluffing

Just over a week ago, Trump concluded the war was unwinnable and called for peace talks with Iran. On March 30, he posted on his self-founded social media platform Truth Social, claiming serious negotiations with a "new, more rational regime" in Iran had made significant progress.

Yet, Trump simultaneously threatened that if talks failed, the US would utterly destroy all of Iran’s power plants, oil wells, and the oil export hub Kharg Island.

The United States keeps sending more Marine Corps troops to the Middle East as a clear show of force, trying to pressure Iran into talks. The goal is to quickly reach a ceasefire and force acceptance of the so-called "15-point ceasefire plan" pushed by the US, effectively demanding total surrender.

But, if deploying troops were so straightforward, Trump would have already sent forces on the ground. His repeated talk of troop deployments is more bluff than action—he is determined to avoid another Afghanistan-style quagmire. Iran has seen right through these empty threats.

Second, the blown cover 

If Russia’s protracted three-year assault on Ukraine has gradually exposed its limits, the United States blew its cover in just three weeks—both diplomatically and militarily. Trump claimed for over a week that talks with Iran were underway, but Tehran has flatly denied it. On March 31, Iranian Foreign Ministry spokesman Baghaei posted on the X platform, rejecting claims of negotiations. He said, "In the past 31 days, we have had no negotiations with the United States. The US has only transmitted a series of proposals to Iran via intermediaries including Pakistan." Baghaei emphasized that Iran hasn't forgotten past failed talks with the US

Trump has essentially been negotiating with thin air. If forced to choose between the US and Iranian accounts, I’d believe Iran. Genuine talks have not happened. The US has merely relayed peace proposals through third parties, with no real bargaining underway.

The US has also revealed military vulnerabilities. After Iran hit the supposedly invincible F-35 stealth fighter jet, on March 27 Iran attacked the US Prince Sultan Air Base in Saudi Arabia, damaging multiple American aircrafts. A $300 million E-3 Sentry Airborne Early

Warning and Control aircraft was struck by an Iranian missile on the runway as it prepared for takeoff, breaking in two—a first for the E-3 in wartime. This incident reveals serious flaws in the US missile defense system, thus allowing Iran’s destruction of such a vital early-warning aircraft.

Earlier, the US aircraft carrier USS Gerald R. Ford had cited a laundry room fire before withdrawing from the Red Sea combat zone. But on March 17, Trump told the audience at a Saudi investment forum in Miami that the Ford was attacked. He said Iranian missiles struck the carrier from 17 different angles, putting the situation on board in grave danger. Trump's unexpected disclosure casts doubt on the official explanation that a laundry fire prompted the Ford’s exit from the Middle East, suggesting it was in fact hit and caught fire.

The US military’s cover is quickly blown in the US-Iran conflict.

Thirdly, Risks and Opportunities 

Trump’s so-called “Art of Donald” lacks a follow-up plan, leaving a deadlock that stalls any deal with Iran. US officials told The Wall Street Journal, in a report published on March 30, that Trump informed aides he would be willing to halt military operations against Iran even if the Strait of Hormuz remains largely closed. Instead, pressure would shift to diplomatic channels to restore free trade flow. Essentially, Trump plans to unilaterally halt hostilities if negotiations with Iran collapse.

With oil prices surging, the whole world must share the burden—Hong Kong included. Yet amid the chaos, Hong Kong finds some opportunities. On March 31, the Ministry of Foreign Affairs confirmed that three Chinese vessels passed through the Strait of Hormuz, including the Hong Kong-registered container ships CSCL Arctic Ocean and CSCL Indian Ocean, which had been stranded in the Persian Gulf for over a month.

Since late February, this is the first time that China’s large ships have transited the Strait, restoring confidence in the global supply chain. Coordinated by the Chinese government, Hong Kong’s container ships remain among the few commercial vessels able to navigate Hormuz. Amid Middle East turmoil, Hong Kong stands out as an alternative stable choice—and it must seize these opportunities.

Lo Wing-hung